THEY have a problem, but I don’t!

One of the credit rating agencies, Experian, hires the Gallup organization to do a study called a “Personal Credit Index” and among the questions asked are questions about house values.

In the latest study, 71% of the 1,004 adults surveyed believe a bubble exists and could burst within the next 12 months. On the other hand, more than half (56%) do not believe this bubble will burst in their areas.

It is certainly true that bubbles do not burst equally. The markets with the fastest run ups (can you say California? New York?) will have the biggest drops. Other markets will not be hit so hard. But they will be hit.

Just yesterday, the Wall Street Journal reported that housing starts had dropped significantly in March, and a survey of builders showed building pessimism for the housing market. A correction is underway. How far and how fast it will go are yet to be seen.